June 7, 2007

Malaysia to encourage private funding for agriculture projects
 

In a bid to boost exports and ensure sufficient domestic food supplies, Malaysia's government will seek RM3.8 billion (US$1.1 billion) in private funding for agriculture projects including fish farming and cattle production.

With a budget of RM1.8 billion (US$525.5 million), Agriculture Minister Muhyiddin Yassin hopes to encourage domestic and foreign investment through an official prospectus and incentives.

Yassin said some 100,000 hectares of land have been reserved for shrimp, ornamental fish and seafood production. The government plans to raise the value of fish caught and produced domestically to RM6.6 billion by 2010.

Domestic self-sufficiency in major food items was important to avoid excessive import costs, explained Yassin. In 2006, agriculture accounted for 8.9 percent of Malaysia's gross domestic product.

However, encouraging more cattle farming would be difficult as landowners might be more inclined towards producing palm oil, which is Malaysia's biggest agricultural export commodity and currently commands record high prices.